When it comes to trade or valuation, property matters are extremely sensitive and call for professional and expert opinions. We all need to exercise caution because one slip-up could result in irreversible damage. Similar to this, when you are about to rent your home, you must get ready with all the documentation and methods of valuation to determine the rental value of your home. However, how does the average person decide on the rent for his\her house?
Some Questions arise in mind like; “What are the rental prices in my area?” “What’s the exact rental value of my home?” and “What would be the rental value of my property?” “How much should I keep charging for rent?” and so on. It’s really a frustrating situation for anyone who wants to rent out his/her house at a suitable rental price Here are some methods for determining rent for property in Pakistan. In addition, consider virtual real estate assistance.
- By Comparing with Similar Properties in Your Locality
- By Analysing Cost, Location, and Available Amenities
- With the Assistance Of Online Real Estate Platforms
1. By Comparing with Similar Properties in Your Locality:
The easiest way to determine a property’s rental value is to compare it to similar properties in your locality or neighborhood. Because the rent must be comparable to the rest of the houses located in the same area. Landlords/landladies frequently determine the rent of their homes by comparing the rents of properties in the same area that have the same size, rooms, and structure as well. In this scenario, they don’t have to exert much effort, and you can do it as well. This method, however, works when all of the properties have a similar structure, just like in housing societies where all of the properties have the same format and specifications.
If you’re wondering, “How much should I keep charging for rent?” Don’t worry, there are other ways for determining rent for your property.
2. By Analysing Cost, Location, and Available Amenities:
Another way to determine a property’s rental values is to analyze all the costs, expenses, resources, and amenities both inside the residence and outside the society. Rental rates are directly proportional to how expensive living costs are.
For instance, as compared to the other cities of Pakistan, Islamabad has the highest living costs. The quality of life and amenities offered there is the major reason for this. In a similar vein, rent will be less expensive in a developing city or underdeveloped area. The rental price for your home will be higher than a less maintained house for rent, any other city if it is well-built and supported by regular maintenance. It includes all costs, total and apart.
The 1% rule is applied in the majority of countries. Nearly 1% of a home’s purchase price is its rental value. Depending on the level of comfort your house provides, some use 1.1% or 0.9%. In Pakistan, this annual rent valuation percentage ranges from 4 to 5% of a house’s overall value. For instance, the rent might be between Rs. 35,000 and Rs. 45,000 for a house worth Rs. 90 lac (9 million). Because of tenants’ ability to pay rent, locational value, and income-related factors, the rent can sometimes be less than 5% of the value of the property. Additionally, if you compare the rent of properties in a posh area and a moderate area, you might come to know more. This way, one can be able to find the exact rental value of his/her property. Here’s a formula curated for the assistance of such persons who are worried about determining the property’s rental value.
5% x House Value = House Rent
3. With the Assistance Of Online Real Estate Platforms:
The last way to determine the rental value of your home or property is to visit the official websites of real estate service providers. This is the simplest of all; simply browse the website and find your area. You can easily obtain a wide range of properties including both commercial and residential ones with varying rental values. It assists those a lot who have queries such as “Rental prices in my area?”, “For How much cost can I rent my house?” or even “Rental price brackets of my property?”. Furthermore, these online platforms contain a wealth of information about every city and town.
Graana.com is one of the online real estate platforms that can assist you in determining rent for property in Pakistan. Moreover, it is a unified platform where you can not only search for and trade properties in Pakistan, but also find real estate investment opportunities. As compared to visiting a real estate agent’s office, these online real estate platforms will save you time, fuel, and energy as well.
Conclusion:
All the methods or ways listed above can assist you in determining the exact rental prices for your property. It is up to you to decide which one is best for you; otherwise, you can always consult a real estate expert for finding the ideal house for rent in Pakistan’s various yet highly-developed cities. Meanwhile, you can check out Graana’s blog section for more informative blogs and other content pieces.